Globalization Quiz

What is globalization?

• The elimination of all political borders

• The shift toward a more integrated and interdependent world economy

• The promotion of local products in global markets

• The increase in cultural homogeneity

Which is NOT a characteristic of globalization?

• Has been growing

• Has economic and non-economic dimensions

• Uniform impact across all regions

• Is stimulated by several factors

What is the primary reason companies engage in international business?

• To promote cultural exchange

• To expand sales, diversify resources, and reduce risk

• To support local economies

• To avoid domestic competition

What is one advantage of the globalization of production?

• Higher transportation costs

• Increased inventory levels

• Improved efficiency in customer service

• Limited market adjustments

What factor has most significantly driven globalization in recent decades?

• Advances in communication and transportation technology

• Increased regulation of trade

• Decline in international competition

• Uniformity of consumer preferences worldwide

What does a multinational corporation (MNE) primarily operate with?

• Domestic resources only

• Foreign direct investment (FDI)

• Licensing agreements exclusively

• Outsourced production entirely

What is one criticism of globalization?

• It reduces access to foreign goods.

• It fosters environmental stress and growing income inequality.

• It eliminates competition between companies.

• It isolates nations economically.

How has globalization impacted income distribution?

• It has created equality across nations

• It has reduced income disparities globally

• It has widened income inequality within and among nations

• It has had no impact on income distribution

Which macroeconomic factor does NOT influence international business activities?

• Cultural differences

• Industry-specific characteristics

• Political environment

• Legal systems

What is one key difference between international and domestic business?

• International business is less affected by cultural factors.

• International business is conducted without governmental influence.

• International business deals with varying legal systems and competitive environments.

• Domestic business has more financial risks.